Tuesday, May 13, 2008

NEW STUDY UNVEILS THE CONTRIBUTION OF BAE SYSTEMS’ CLYDE SHIP YARDS TO THE SCOTTISH ECONOMY INCREASED BY 50% IN 2007 TO £392 MILLION

NEW STUDY UNVEILS THE CONTRIBUTION OF BAE SYSTEMS’ CLYDE SHIP YARDS TO THE SCOTTISH ECONOMY INCREASED BY 50% IN 2007 TO £392 MILLION

12 May 2008 | Ref. 153/2008

Glasgow, United Kingdom – A study by Fraser of Allander Institute has unveiled that the contribution of BAE Systems’ Surface Fleet Solutions business to the Scottish economy increased by £139 million to £392 million in 2007 when compared to its contribution in 2006.

The study, commissioned by BAE Systems, also reveals that in 2007, for every 100 people employed by the Company on the Clyde, a further 68 jobs are supported in other industries in Scotland, bringing the total number of jobs supported by the Clyde yards to 5,364.

Key findings:• The 3,194 jobs provided by BAE Systems at Govan and Scotstoun support an additional 2,170 jobs in other industries in Scotland. BAE Systems therefore supports a total of 5,364 jobs across Scotland as a whole.• The contribution to Scottish Gross Domestic Product or Gross Value Added (GVA) created by the Govan and Scotstoun operations stands at £107 million.• The GVA of £107 million supports an additional £58.6 million worth of output in other industries in Scotland.• The company supports £132.2 million worth of wages across Scotland.• For every £100 paid directly in wages to BAE Systems’ employees; £53 worth of wage income are supported elsewhere in Scotland.

Commenting on the study’s findings, managing director of BAE Systems Surface Fleet Solutions Vic Emery said; “This research shows that the industry continues to thrive in Scotland and the thousands of people who benefit from the existence of shipbuilding on the Clyde continues to grow year on year.

“The level of growth we have seen in 2007 is substantial and I am delighted that our business has had such an extensive, positive impact on the country’s economy.

“While the effect on the Scottish economy is hugely significant, the pride and social impact of the Clyde yards cannot be underestimated.”